Ripple CEO Suggests Chinese President Xi Jinping Could Roll Back Bitcoin

He then noted that China had been “incredibly” strategic when it comes to crypto and blockchain (and its expands far beyond its tribalizing CBDC …

In a virtual conversation during this year’s DC Fintech Week conference, Ripple CEO Brad Garlinghouse has floated the idea that Chinese President Xi Jinping could reorganize the Bitcoin blockchain if he were to lose a huge sum of money in the top cryptocurrency:

“What happens if Premier Xi loses a million dollars in Bitcoin? You don’t think that the Chinese Communist Party has the opportunity to affect a change to the bitcoin blockchain and make a reverse premier’s easy a million-dollar loss of bitcoin that might have been hacked”

His arguments mirror the controversial op-ped by ex-Ripple CEO Chris Larsen. It has been widely criticized by Bitcoiners since it’s practically impossible for the Chinese government to seize miners.

China’s strategic crypto play

Garlinghouse once again started complaining about regulatory uncertainly in the U.S. — where heterogeneous agencies have diverging views on cryptocurrencies.

He then noted that China had been “incredibly” strategic when it comes to crypto and blockchain (and its expands far beyond its tribalizing CBDC program).

The Ripple executive further elaborates that we tend to gloss over the fact that Bitcoin mining is inherently centralized:

“Bitcoin mining is 65 to 75 percent controlled by Chinese miners, and I think that it’s hard not to argue that the Chinese Communist Party does not have an opportunity to control it.

In addition, Garlinghouse also mentioned the negative environmental impact of proof-of-work based cryptocurrencies such as Bitcoin and Ethereum.

“It’s concerning to me that we, in the U.S. have given these technologies an advantage.”

CBDCs don’t solve the problem

When asked to weigh in on the rise of CBDCs, Garlinghouse called it a “very positive dynamic” while also arguing that they do not pose a threat to Ripple or XRP:

“Just having a central bank digital currency still doesn’t solve the problem of settling a transaction, settling a payment between the Argentinian peso and the Australian dollar.”

As reported by U.Today, Federal Reserve Chairman Jerome Powell signaled that there was no final decision on the issuance of a CBDC during today’s conference.

FSB Report Says Stablecoins Promote Financial Inclusion: Urges Regulators to Tighten …

Meanwhile, the report lists other risks associated with stablecoins and these include the decentralised nature of stablecoin arrangements. According to …
FSB Report Says Stablecoins Promote Financial Inclusion: Urges Regulators to Tighten Laundering Controls

The Financial Stability Board (FSB) says stablecoins have the potential to enhance the efficiency of the provision of financial services. The body adds that the hybrid cryptocurrencies have the potential to bring efficiencies to payments (including cross-border payments) as well as to promote financial inclusion. Yet despite this acknowledgment, the FSB still argues against the widespread adoption of stablecoins claiming they “may generate risks to financial stability, particularly if they are adopted at a significant scale.”

The AML/CFT Argument

In a report, the FSB says activities associated with global stablecoins arrangements (GSA) “pose risks that can span across banking, payments, and securities/investment regulatory regimes both within jurisdictions and across borders.”Predictably, the report states that “depending on the facts and circumstances, specific money-laundering/terrorist financing risks may emerge” with the widespread use of stablecoins.

Interestingly, however, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) reports that “identified cases of laundering through cryptocurrencies remain relatively small compared to cash laundered through traditional methods.” For instance, data from the UN’s Office on Drugs and Crime estimates that between $800 billion to $2 trillion, or the equivalent of between 2% to 5% of global GDP, is laundered through cash channels each year.

Meanwhile, the report lists other risks associated with stablecoins and these include the decentralised nature of stablecoin arrangements. According to the FSB report, such arrangements pose “governance challenges.” Furthermore, the infrastructure and technology used “for recording transactions, and accessing, transferring and exchanging coins could pose operational and cyber-security risks.”

Stablecoin Supply Insignificant

However, despite the increasing regulator concern, the supply of stablecoins remains relatively low. According to data from Coinmetrics, the total supply of stablecoins was expected to exceed the $20 billion mark in October 2020 while the market capitalization of bitcoin stood at $211 billion on October 17.

Still, based on the identified risks and challenges, the FSB is proceeding to recommend that GSAs must to “adhere to all applicable regulatory standards and address risks to financial stability before commencing operation.”

The report also recommends that authorities must “ensure that GSC arrangements have effective risk management frameworks in place especially with regard to reserve management, operational resilience, cybersecurity safeguards, and AML/CFT measures, as well as ‘fit and proper’ requirements.”

A Coordinated Global Regulatory Response

The FSB report, which is coming after the release of the cryptocurrency enforcement framework document by the US government, has a total of ten recommendations. In 2019, financial regulators were alarmed when Facebook and partners announced plans to launch the Libra stablecoin. Although the Libra project appears to be faltering, countries and regulatory bodies have been working to establish a framework that will provide them with tools to control the stablecoin market.

What are your thoughts on the FSB report? Share your views in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Chinese CEO Of OKEx Crypto Exchange ‘Arrested’ Again; Whales Bail

“Chinese traders are still able to use other trading platforms, including decentralized exchanges, so temporary difficulties with one exchange will not …
Nathan Road, Hong Kong

Star Xu, OKB coin founder and main man behind OKEx, missing in action.

getty

OKEx users found out that they couldn’t cash their chips early Friday as the founder of the cryptocurrency exchange was ‘arrested’.

Mingxing Xu, also known as Star Xu, was reportedly being questioned by police, Chinese news agency Caixin reported today. The news from Caixin came shortly after OKEx issued an “Announcement on Suspension of Withdrawals ” of crypto assets on its platform, meaning no one could get their money out. The company’s digital coin, OKB, fell nearly 11%.

Some of the company’s key personnel are said to be cooperating with an investigation into Star Xu and that shuttered accounts as of 11:00 am in Hong Kong. The company said that “other functions of OKEx are guaranteed to be normal” and “asset security is not affected.”

Hong Kong-based crypto sources said that Xu may be being held to help an investigation into the backdoor listing of OK Group in Hong Kong in 2019 and is not related to the exchange’s withdrawal issue.

Caixin also reported that Xu had been arrested at least a week ago and had not appeared at the company for many days. Mysteries abound. He was also part of a fraud investigation in 2018.

Looking at this from a the big picture: what does this mean for the industry in China?

The OKEx case is a clear reminder for the blockchain industry in China that it needs to be totally decentralized. It proves that only when there are no key owners of an organization (such as a crypto exchange) can it be immune from political influence and interference. Some industry insiders see decentralization solutions benefiting from problems such as this, as it is a reminder that so-called DeFi projects could be scaled to industries, other than finance, in order to protect against crises exemplified by today’s OKEx withdrawal ban.

Some big crypto traders are moving on the actions out of OKEx. Some $56,557,316 was transferred from OKEx to Binance today. According to data by Glassnode, a total of 10,000 BTC (around $113 million) was withdrawn in two large batches in the past 48 hours.

“Chinese traders are still able to use other trading platforms, including decentralized exchanges, so temporary difficulties with one exchange will not have a significant impact on those traders,” says Alexandr Denisov, CEO and co-founder of Deep Quant, a Russian software company specializing in algorithmic trading of cryptocurrencies. They are currently looking to partner with OKEx.

For the most part, people don’t see this as a death knell to OKEx yet, or a shot across the bow of China and Hong Kong’s crypto market.

“We don’t know yet if they did anything unlawful at OKEx,” says Kirill Bezverhi, CEO of Moscow based FinPR Agency, which works with blockchain and new tech companies in Russia. “I’m not sure that this is a sign that China has something against blockchain. In the short term, we can really see the outflow of deposits from the Chinese crypto exchanges today, simply because people are trying to reinsure themselves and protect their assets.”

OKEx is one of China’s three biggest exchanges, with more than $6 billion in daily trading volume. Some 1.1% of the circulating Bitcoin supply is held in OKEx cryptocurrency wallets.

ZIL Price Stands Top Among Today’s Gainers, XRP and ADA Follow The Bulls

Ripple (XRP) struggled on the charts in recent days as the general crypto market fell into great dips. As the market began to recover, ripple, however, …

Although there’s been a general price plunge since yesterday, very few altcoins are trying to nurture a bullish trend. While Bitcoin strides between the $10,500 and $10,700 area, ETH seems to have taken a little break and sits around $350 instead.

Many other altcoins have plunged by some considerable margins while total market capitalization sinks extensively.

Amid a wild bear market, coins like Zilliqa, XRP, and ADA have gone against the tides to record slight gains that catch attention.

Top Gainers:

#1. Zilliqa (ZIL 9% Gain):

Zillique chartZillique chart

Zilliqa makes the first spot among this category of top gainers with 9%.

Zilliqa [ZIL] gain comes amid several weeks of sideways movement which in turn, is instigating a bull market within the last day. ZIL is currently trading at $0.020 amid a market cap of $228 million.

The coin’s exchange volume within the last 24 hours is hovering around $68 million.

Technical Points

ZIL broke there resistance at $0.0198 to surpass the level. Eventually, the coin rose all the way to $0.0205 with a 12% profit.

Beyond this level, the next level of major resistance lies at $0.021 where prices have tested and failed In the past.

  • Next major resistance $0.021
  • Next major support at $0.0195
  • RSI at the oversold condition at 25.0

#2. Ripple (XRP 6.2% Gain):

Ripple chartRipple chart

Ripple, like major altcoins, also gained slightly within the previous days.

Ripple (XRP) struggled on the charts in recent days as the general crypto market fell into great dips. As the market began to recover, ripple, however, remained silent and traded sideways instead, perambulating around the $0.24 region for several days.

Also Read : Ripple Price Prediction: Will Ripple Reach $5 In 2020?

Ripple gained around 6% within the last day, landing at $0.256 per unit of the coin. XRP later plunged by a little margin to around $0.24 at which it is currently changing hands.

Technical Points:

  • Prices found major support at the $0.245 area
  • The next level of major resistance lies at $0.255
  • The major price trend is bullish.

#3. Cardano (ADA 5% Gain):

CardanoCardano

The price of Cardano [ADA] has gained around 5% in a 24-hour bull run which escorted its price towards the $0.097 mark.

The top cryptocurrency recorded the highest gains since June 28, surpassing bitcoin and every other major altcoin. This current bull run is painting a bullish scenario in the near term and this may be a clear indication for future prices.

Also Read :Cardano [ADA] Price Prediction: Will ADA Ever Reach $10?

Amid the intraday price swing, Cardano [ADA] reached a top price of around $0.099. This top was recorded having bounced off the support at the bottom price of September 24, 23:30 hours UTC at $0.090.

This bounce wasn’t opposed by the midline moving average upon which prices have had major difficulties in the past.

As of now, ADA is trading at $0.097 as market capitalization grows to $3.0 billion. These figures relate to a fluctuating 24-hour volume which now stands at $385 million.

Technical points:

  • Near term price trend seems bullish.
  • The next level of support lies at $0.096
  • Next key resistance level at $0.1

BuyUcoin lists Bitcoin SV in India, CEO says scalability is a key issue

Most popular are Bitcoin, Ethereum, Ripple. Regulation has always been a big issue in India. What’s the current legal status for digital assets and …

Indian digital asset exchange BuyUcoin recently announced it would list Bitcoin SV (BSV) for trading on its platform. It’s a sign BSV is starting to be noticed everywhere not just for its trading price, but the actual utility it offers. We spoke to BuyUcoin CEO Shivan Thakral about what he sees as BSV strongest points and use-cases, and about the digital asset industry in India in general.

It’s little surprise that BSV’s ability to scale was a major motivator, as is its focus on micropayments as a use-case. The two go hand-in-hand: only with the capacity to handle a huge amount of transactions, while keeping fees low enough to barely be noticeable, could any blockchain hope to fulfil this promise.

Faced with millions of transactions and processes per day, other blockchains (namely BTC and ETH) fall flat. Their fees become unaffordable, their mempools overflow, and any real business happening on their blockchains can grind to a halt.

Increasing name recognition and acknowledgement that BSV does in fact represent the original vision for Bitcoin are also key factors where exchanges decide to list the asset. As more exchanges jump on board, it’s another sign the propaganda war that rages against BSV is having little effect in the real world—if people see value in something, they will take an interest in it.

Digital assets have received a lot of attention in India in particular. Issues with the local currency saw many (particularly those interested in technology) look to alternatives. This eventually led to the country’s Reserve Bank effectively “banning” digital assets in 2018. However the central bank’s order was eventually overruled by India’s Supreme Court in March 2020, prompting the blockchain industry to once again emerge and flourish.

Read our interview to find out more, and see what exchange operators are saying about BSV.

Interview with Shivam Thakral, BuyUcoin CEO

BuyUcoin has been around since 2016, but might not be familiar to those outside India. Could you give us a brief background to the company? Also, besides exchange trading, what other services do you provide?

BuyUcoin is building the cryptocurrency ecosystem since 2016 and it’s one of the oldest exchanges, and its core segment is cryptocurrency exchange (real-time, OTC). Apart from that it also gives services to blockchain companies in areas like tech architecture, marketing, tech development, real adoption.

Why did you decide to support BSV?

We always try to include projects in our ecosystem that provide value to the cryptocurrency community in terms of their technology and their solution, and since BSV is also innovating and providing scalability to the current cryptocurrency ecosystem, hence that was the reason of listing them.

What other digital assets does BuyUcoin support, and what have been the most popular?

BuyUcoin supports all major digital assets like Bitcoin, Ethereum, Ripple, Chainlink, Polkadot and others. Most popular are Bitcoin, Ethereum, Ripple.

Regulation has always been a big issue in India. What’s the current legal status for digital assets and exchanges there?

There were some hurdles in the past but since the Supreme Court decision everything is working fine for trading and for exchanges. Also trading volume has surged more than 8x after the decision.

Is there much “daily use” of digital assets/currencies in India? If so, who uses them? Are they used for purchases or mainly for trading/investments?

There are several use cases for digital currencies apart from trading and investments that includes (but limited to) remittances in and out of India, which recently have been surging and people find it cheap and easy using digital currencies.

What do you think will be the most popular use case for Bitcoin BSV?

I personally think BSV’s best use case is in micro payments.

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